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2.2 Impact of leadership in implementing change

2.2.6 Transformational leadership

Northouse (2016) describes transformational leadership as one of the most popular leadership concepts that immensely incorporate such characteristics as values, standards, emotions, satisfaction of followers needs and influencing employees to perform beyond expectation. Transformational leaders extensively understand the underlying values of the society as well as the emotional and social needs of the employees (Boonstra, 2012). Diebig et al. (2016) point out that, through a well-articulated and emotional vision, transformational leaders are able to identify opportunities for the organisation.

Furthermore, transformational leaders are concerned with transforming organisations and the individuals within them and, they influence followers to look beyond their self-interests but rather to commit themselves to the common interests of the group and the common vision to achieve the organisational goals (Lutz Allen et al., 2013). van der Voet et al.

(2015) also point out that transformational leadership positively influences employee’s commitment to change owing to their ability to create a compelling vision of the anticipated and desired change.

Shin, Seo, Shapiro and Taylor (2015) claim that, if leaders adopt a transformational leadership behaviour during change and continuously remind the followers the benefits of change, the is a high probability that followers will have high expectations for the future and accept change. Lopez-Dominguez, Enache, Sallan and Simo (2013) note that, individualised consideration a sub-dimension of transformational leadership contributes positively to changing employee’s attitude and embrace the group or collective interests as opposed to their self-interests.

Transformational leaders envision the future through a vision and, they motivate and stimulates pessimistic employees to understand the need for change and influence them to participate in the change implementation (Li, Chiaburu, Kirkman and Xie, 2013). Van Knippenberg and Sitkin (2013) also note that, as far as transformational leadership is concerned, it is through the impact of its sub-dimensions, (idealised influence, individual considerations, inspirational motivation and intellectual stimulation) that employees are influenced to perform beyond their expectations. van der Voet (2016) also state that, the

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combination of change leadership and transformational leadership improves the participation of employee’s during change.

İkinci (2014) also add by stating that, literature suggests that transformational leadership is the most effective leadership approach for change management. Qu et al. (2015) support that transformational leaders are perceived as role models by demonstrating high standards, values and morals. Moreover, Yasin Ghadi et al. (2013) agree and emphasise the same view, by stating that when leadership act as a role models, the employee’s commitment and sense of value and engagement increases. Delegach, Katz-Navon and Van Dijk (2017) support the line that, both transformational and transactional leadership style has a positive impact on employee’s commitment. Additionally, transformational leaders intellectually support and continuously motivate subordinates during change by giving them a latitude to make decisions independently which enables them to overcome negative perceptions about change and view problems differently (Abrell-Vogel and Rowold, 2014).

Breevaart et al. (2014) also discussed four components of transformational leadership which includes, idealised influence, individual considerations, inspirational motivation and intellectual stimulation. In addition, the authors explain that, idealised influence implies that leaders are respected by employees and that employees trust and identify with the leadership. Individual considerations imply that leaders act as advisers and they further take into cognisance the needs of each individual employee. Inspirational motivation relates to the leadership’s ability to formulate and communicate a compelling vision for the future. Intellectual stimulation relates to how the leader help employees to view or perceive problems differently.

Guay and Choi (2015) agree that the sub-dimensions of transformational leadership are fundamental tools that aid to enhance the confidence of introverted followers by engaging them. Joo and Nimon (2014) also add that transformational leaders attend to organisational member’s needs and further provides coaching, feedback, empower and develop them. Additionally, transformational leadership places the leader at centre of this leadership concept and not the followers, and conversely, servant leadership credit followers for the accomplishment of goals and put followers at the central point (van

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Dierendonck et al., 2013). Uhl-Bien, Riggio, Lowe and Carsten (2014) point out that, transformational leadership plays a fundamental role in encouraging subordinate to improve performance and commitment to change and accomplish desired objectives.

Moreover, van der Voet et al. (2015) agree that transformational leaders enhance commitment to change and further inspire and motivate organisational members during both planned and emergent change.

The study by Loo, Lee, Low and Loon (2017) also arrived at the same conclusion as many other researchers on acknowledging the effectiveness of transformational leadership and its positive impact on employee’s perception towards change and commitment to change.

Moreover, Stinghamber, Marique, Caesens and De Zanet (2105) add to this line by agreeing that transformational leaders stimulate and encourage follower’s commitment to change through an appealing vision. Moreover, the by Shin et al. (2015) also support that leadership’s involvement or intervention during change increases employee’s commitment to change.

Transformational leaders are more visible to followers as they lead from the front and followers look up to them by observing their actions and behaviour which is the source of influence, and in contrary, servant leadership influences followers differently, as the leader is more down to earth and does not necessarily lead from the front Van Dierendonck et al. (2014). The author further state that, the source of influence for transformational leadership emanates from the fact that the leader is a central character and the leader’s demonstration of charisma create a perception that he or she is effective and in contrary, servant leadership is more focused on followers, as the leader shows humility and credit followers for success.

Abrell-Vogel and Rowold (2014) state that, transformational leaders are good communicators of an appealing and optimistic vision that connect with the emotions of subordinates, and the authors describe this concept or ability as ‘vision articulation’.

Transformational leadership inspires followers to be committed to the set values and vision and encourages them to work towards achieving collective goals of the organisation (Guay and Choi, 2015). In addition, Lutz Allen et al. (2013) argue that the ability of transformational leadership to influence change in organisations is one of the

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most significant characteristics of this leadership style. In addition, Guay and Choi (2015) also add their view which correlates with other researchers by emphasising that, transformational leadership influences employee to perform beyond expectation.

Furthermore, Men (2014) support that transformational leaders are emphatic and passionate about satisfying the needs of employees and they also promote and encourage individual employee development.

Additionally, Guay and Choi (2015) are in support of what many other researchers suggest that transformational leadership create a vision that stimulates employees to put the interests of the group first. Allen, Smith and Da Silva (2013) also agree that transformational leaders create an inspiring vision for the followers which provide guidance to the desired future. There are some similarities between transformational leadership and visionary leadership at least according to the description by Taylor et al.

(2014) who describe a visionary leader as a leader who formulate a vision that is aligned to the interests of both the group and the organisation and effectively communicate the vision to get the buy-in and support.